Monthly Income Scheme

 

8% interest payable monthly

 

Name of the Scheme

Interest

Maturity Period

Limit of Deposit

I. T. Benefit

MIS

8% monthly

6 years

Min. Rs. 1000

Max. Rs. 3,00,000 for Single Account & Rs. 6,00,000 for Joint Account (w.e.f. 01.06.2000)

The maximum limit to be held by an individual will be the deposits in his/her single accounts together with his/her share of the deposits in the joint account which should not exceed  Rs. 3,00,000

In the Union Budget 2005 the Tax benefit is given upto the deposit of Rs. 1,00,000

 

Opening Of Account

A Monthly income Scheme may be opened by depositing Rs. 1000 or multiples thereof. Any number of accounts may be opened. The total deposit shall not, however, exceed Rs. 3,00,000 in case of a Single Account and Rs. 6,00,000 in case of a Joint Account.

Account can be opened in any departmental Post Office and can be transferred from one Post Office to another.

Deposit may be made in cash or by cheque or by demand draft.

 

Payment Of Interest

Deposit under monthly income scheme shall bear interest at the rate of 8% per annum payable monthly.

If an account holder so desires, his monthly interest may automatically be transferred to his Savings Bank Account at the same Post Office subject to the condition that by so transferring, the interest, maximum limit on balance in the Savings Bank Account is not exceeded.

 

Premature Closure of Account

An investor may, at any time, after expiry of one year from the date of opening of the account, close the same and withdraw the entire deposited amount. If any amount is withdrawn before 2 years, an amount equal to 3.5 per cent of the deposit shall be deducted, but due monthly interest @ 8% will be paid.

If premature withdrawal is made after 3 years from the date of deposit, there shall be no deduction of principal of due monthly interest.

In case of death of a depositor before maturity, account may be closed and deposit before maturity, account may be closed and deposit refunded along with interest up to the month preceding the month in which refund is made.

 

Illustration

If an investor deposits Rs. 60,000 under the scheme, say, on 17th August 2005, he will get interest of Rs. 400 on 17th of each month starting from 17th September 2005 and up to 17th August 2011.

 

Prev

Home

Next

 

RushatiINDIA & Associates

60(24/16) Vivekananda Road, Sukantapally

PO: Sheoraphuli, Dist: Hooghly, WB, India

Pin: 712 223

Phone: +91- 9433235073

Email: [email protected]

Web: www.geocities.com/rushatiindia

 

Hosted by www.Geocities.ws

1